Indian rupee hits record low as Iran war-spurred economic risks mount

MUMBAI: The Indian rupee fell to a record low on Friday, deepening ​losses driven by a disruption of global ‌energy supplies amid the war in the Middle East, which threatens to upset the growth-inflation ​balance for Asia’s third-largest economy.

The rupee ​fell to 92.92 against the US ⁠dollar, eclipsing its previous low of 92.63 ​hit on Wednesday.

Oil prices had surged to ​nearly $120 per barrel on Thursday following attacks on key energy infrastructure in the Gulf region, before retreating ​on Friday.

Leading European nations and Japan have offered ​to join efforts to secure safe passage for ships ‌through ⁠the Strait of Hormuz and the U.S. has outlined moves to boost oil supply.

The strain on the rupee is unlikely to ​ease in ​the near ⁠term as worries over the oil price shock have prompted ​foreign investors to pull out over $8 ​billion ⁠from local stocks so far in March, the largest monthly outflows since January 2025.

A ⁠sustained ​increase in energy prices ​could hurt India’s growth and lift inflation, economists have said.